// startup autopsy

Merchantry

The wholesale marketplace that couldn't wholesale its way to scale.

marketfitAcqui-hire

Fatal mistake: Failed to build sufficient network density on both buyer and seller sides before well-funded competitors locked up the market.

Founded	2004
Closed	2013
Country	USA
Sector	Ecommerce

50%

Key Events Timeline

2004-01-01

FOUNDING

Merchantry founded in the USA to build a B2B wholesale ecommerce marketplace.

2010-06-01

FUNDING

Raised significant funding rounds totaling $15.9M to grow platform and sales team.

2012-03-01

PRODUCT LAUNCH

Launched updated marketplace features aimed at enterprise brands and large retail buyers.

2013-01-01

SHUTDOWN

Acquired by Tradesy in 2013 after failing to scale independently in the competitive wholesale ecommerce market.

Full Analysis

Analyst plan

Documented cause

Merchantry was a B2B wholesale ecommerce platform designed to connect brands with retailers, operating in the competitive marketplace sector. The startup failed to achieve critical mass and scale necessary netw...

ork effects to compete in a crowded B2B marketplace space dominated by larger, more established incumbents with greater resources and existing relationships. The fundamental challenge was the chicken-

Verified lesson

“...”

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€28.6M

Peak valuation

HypeCycle · MoatType · ResearchTags

Merchantry raised €15.9M before failed to build sufficient network density on both buyer and seller sides before well-funded competitors locked up the market. ended it. See the documented cause, verified lesson and all failure signals.

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